September merchandise trade deficit narrows to $1.3 billion: Statistics Canada

Canada’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports, Statistics Canada said Tuesday.

The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.

Statistics Canada said the results for September came as total exports edged down 0.1 per cent to $63.9 billion.

Exports of metal and non-metallic mineral products fell 5.4 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent. Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports.

Meanwhile, imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.

In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.

“Activity in volume terms was encouraging, suggesting net exports might add a little to economic growth in Q3 after dragging in the previous quarter,” BMO economist Shelly Kaushik wrote in a report.

Regionally, Statistics Canada said the country’s merchandise trade surplus with the United States was $8.3 billion in September compared with $7.8 billion in August as exports to the U.S. rose 1.6 per cent and imports from the U.S. gained 0.8 per cent.

Canada’s trade deficit with countries other than the United States was $9.6 billion in September compared with $9.3 billion in August.

In a separate release, Statistics Canada said the country’s international trade in services deficit was $1.2 billion in September compared with $1.4 billion in August as exports of services rose 1.6 per cent to $17.2 billion and imports of services gained 0.3 per cent to $18.4 billion.

When the international trade in goods and services were combined, Canada’s total trade deficit with the world was $2.5 billion in September compared with $2.9 billion in August.

This report by The Canadian Press was first published Nov. 5, 2024.